The effects of value of city on urban house price: An empirical study based on factor analysis and Panel Data model

Based on the panel data of 35 large and medium-sized cities in China from 2004 to 2008, this paper empirically analyses the effects of value of city on urban house price by using the factor analysis and the econometric model of Panel Data. The result of study shows that the value of cites in our country are increasing. The value of city for urban house price is relative. The value of city decides urban house price. The difference of value of the city is reflected in urban house price. Finally, using deviation value evaluates matching degree between value of city and urban house price.